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Posted by Caroline Tung
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8 December, 2025
PLANS for a new timber processing facility near the Port of Portland have been approved in a joint announcement by the Federal and Victorian state governments.
Australian Forest and Wood Innovations (AFWI) will lead the feasibility study of a new hardwood and softwood processing plant in Portland.
The “Precinct Project”, which received $2.95 million from both the federal and state governments, aimed to support Victoria’s manufacturing capability and reduce reliance on imports.
Member for Western Victoria Jacinta Ermacora said the new plantation would benefit the southwest Victorian town in several ways.
“The Precinct is about unlocking Portland’s potential — driving innovation, creating jobs, and building a stronger, more sustainable future for our region,” she said.
Locally grown timber will be used to make products such as glue laminated timber, laminated veneer lumber, and housing solutions.
Minister for agriculture Julie Collins said the plantation project would contribute greatly to industry.
“By investing in advanced timber processing facilities, we’re not just building infrastructure — we’re reshaping the industry,” she said.
The project will combine the expertise and knowledge of industry, academics, Traditional Owners, and all levels of government to undertake more than $7 million in R&D and feasibility project.
The research will take place over the next two years and support the development of a shared advanced manufacturing facility.
Businesses will operate independently but share key resources like roads, energy, water, and transport hubs.
The plantation is expected to produce high value timber materials to fast track production of prefabricated housing.
Federal Labor Senator for Victoria Raff Ciccone said it was time to make more use of readily available resources.
“The Precinct Project is a great step towards making more of our timber products here in Australia, supporting local jobs and boosting Wannon’s manufacturing future,” he said.
The precinct will be positioned at the heart of the Green Triangle — a major forestry region in south-west Victoria and south-east South Australia.
The region supplies large volumes of plantation hardwood and softwood timber to manufacturers.
The timber hub feasibility study initially assessed the viability of glue-laminated timber production in the Green Triangle, from the plantation hardwood resource that have traditionally been exported.
DCN contacted the Port of Portland for comment but got declined.
